A new policy proposal submitted ahead of the federal budget calls for the creation of a Rs. 3 billion National AI Adoption Fund aimed at helping businesses across Pakistan integrate artificial intelligence into their operations.

According to private-sector AI consultancy Densight Labs, the plan would allow eligible small and medium-sized enterprises (SMEs) to receive grants covering up to 40% of AI implementation costs, with a funding cap of Rs. 5 million per company.

The first phase of the initiative is expected to support around 600 businesses, spanning key sectors such as manufacturing, healthcare, financial services, agri-tech, retail, and logistics.

Participating companies would be required to show measurable gains in productivity, efficiency, revenue growth, or cost savings after adopting AI-based tools.

The proposal emphasizes that Pakistan’s challenge is not only developing AI talent but also ensuring its practical use in the business sector. It warns that without widespread adoption by local firms, the economic gains of artificial intelligence could remain largely unrealized.